Demographic Shifts

ASEAN is experiencing a significant demographic shift – at both ends of the age spectrum – with declining proportions of young people aged 15 to 24 and increasing proportions of elderly people aged 65 and above. This phenomenon will have deep impacts on society’s structure, economic growth, and social protection expenditure, as well as labor migration.

By 2025, 68 million new workers will enter the labor force, youth will account for more than 17 % of the population in Indonesia, Lao PDR, and Philippines, while in Singapore and Thailand their share will be less than 11%. During this period, the Philippines will see its working-age population expand by 35%, reflecting a significant potential growth dividend.

Between 2010 and 2025, the proportion of the elderly in Thailand’s population will have almost doubled from 9 % to 16 % and in Singapore from 9 % to 17 %, which may place a significant strain on their labor markets and social protection systems. Greater integration and labor mobility will need to play an important role in addressing some of these imbalances.